Role of Entrepreneurship in Economic Development

Role of entrepreneurship in economic development
EntrepreneurAn entrepreneur can be regarded as a person who has the initiative skill and motivation to set up a business or enterprise of his own and who always looks for high achievements. He is the catalyst for social change and works for the common good. They looks for opportunities, identifies them and seizes them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake risks in order to achieve their goals. Need for Entrepreneurship Development

Economic development essentially means a process of upward change whereby the real per capita income of a country increases over a period of time .Entrepreneurship has an important role to play in the development of a country. It is one of the most important inputs in economic development. The number and competence of entrepreneurs affect the economic growth of the country. The economic history of the presently advanced countries like USA, Russia and Japan supports the fact that economic development is the outcome for which entrepreneurship is an inevitable cause. The crucial and significant role played by the entrepreneurs in the economic development of advanced countries has made the people of developing and under developed countries conscious of the importance of entrepreneurship for economic development. It is now a widely accepted fact that active and enthusiastic entrepreneurs can only explore the potentials of the countries availability of recourses such as labor, capital and technology. The role of entrepreneurs is not identical in the various economies. Depending on the material resources, industry climate and responsiveness of the political system, it varies from economy to economy. The contribution of entrepreneurs may be more in favorable opportunity conditions than in economies with relatively less favorable opportunity conditions.

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The entrepreneurs with their ability to scan, analyze and identify opportunities in the environment transform them into business proposition through creation of economic entities. Entrepreneurship and economicdevelopment are intimately related. So, that entrepreneurial process is a major factor in economicdevelopment and the entrepreneur is the key to economic growth. Whatever be the form of economic and political set-up of the country, entrepreneurship is indispensable for economicdevelopment. Entrepreneurship is an approach to management that can be applied in start-up situations as well as within more established businesses.
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The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economicdevelopment of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economicdevelopment of an economy is discussed in a systematic and orderly manner as follows.
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Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economicdevelopment of the country.
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The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economicdevelopment of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economicdevelopment of an economy is discussed in a systematic and orderly manner as follows.Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economicdevelopment of the country.Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up.of more and more units by entrepreneurs, both on small and large-scale numerous job...

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An entrepreneur can be regarded as a person, who has the initiative skill and motivation to set up a business or enterprise of his own and who always looks for high achievements. He is the catalyst for social change and works for the common good. They look for opportunities, identify them and seize them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake risks in order to achieve their goals.
Entrepreneurship is one of the most important inputs in the economicdevelopment of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economicdevelopment of an economy are discussed in a systematic and orderly manner as follows.
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“‘Discuss the relationship between entrepreneurship, innovation and economicdevelopment. What role do creativity and problem solving play in this relationship?”
In today’s world, entrepreneurship and innovation are becoming increasingly crucial as drivers of the economy, especially so in the developing economies where trade plays a major part in generating revenue. In China, small-and medium-sized enterprises (SMEs) account for almost 70 percent of all Chinese exports, a share that reflects the above statement about the importance of entrepreneurship to economic robustness. Some questions may be raised on whether entrepreneurship lead to economicdevelopment or is the latter a prerequisite to facilitate the entrepreneurship and innovation processes instead. This essay , while recognizing the need of certain institutions and framework to be in place and functioning well in order to ease the functioning of business activities, takes the stand that entrepreneurship and innovation leads to economicdevelopment more often than of the other way around.
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...﻿Johann Philip Sanchez 11107052
CONADEV K34
Economicdevelopment has been influenced by four different major theories that talk about how change is best accomplished. The theories are the Linear Stages of Growth theory, the Structural Change theory, the Neoclassical Counter Revolution theory and the New Growth theory.
The linear stages of growth model is something like the Marshall Plan, which was used to rebuild the war-torn countries of Europe after the war. This theory basically believes that industrialization is the key to the economy’s prosperity and progress. Moreover, according to this theory, industrialization can be achieved by increasing capital as much as possible together with the community. This is their way of developing one’s economy and motherland.
The Harrod-Domar model is also a major part of this theory. It talks about the rate of growth of a nation in a mathematical manner. It is actually based on the savings and income of the state.
Unfortunately, this theory does not work in some instances because it is not a sufficient condition and it focuses too much on investing in capital.
On the other, the structural change theory mainly focuses on the process wherein nations develop their economy by drastically urbanizing and modernizing their manufacturing and service sector. A great example of this kind of transformation is the Lewis Theory of Development. It explains that underdeveloped nations are...